SNB Chair Schlegel Signals Caution: Negative Rates Not Ruled Out Amid Inflation Talks

On January 27, 2025, the Chairman of the Swiss National Bank, Martin Schlegel, spoke on interest rates and the economic strategy of the bank. He said the SNB doesn't like negative interest rates but cannot rule them out for the future, which is to say cautious as economic conditions change.

Schlegel said there may be months when inflation is negative, but he assures that this is not harmful and will not affect the overall economic plan. His basic focus is on stabilizing prices, which he assured remains the primary goal of the SNB.

There was a slight appreciation in the exchange rate of the Swiss franc and US dollar immediately after the speech by Schlegel. There is an observance on his part on future policy changes coming from the bank. On aggregate, his pronouncement showed commitment to closely monitoring the economic situation but holding dear price stability at the top.